A Tale as Old as Time

This morning, I noticed this article on the The Street

Is Disney’s Stock Toxic?
Disney isn’t a bad company. But it’s a bad stock right now, because sellers are controlling the price action. So, as long as that remains the case, you don’t want to own it.

Briefly, the writer notes that Disney stock has been hard pressed since it’s high in April.  The author feels that it is not a bad company and is doing a lot of everything right but…

I took note because I am interested in most things Disney.  The amusement parks, the awesome movies, the intense focus on delighting kids.  I am also very interested in Disney stock.  You see the author shares that until the sellers stop putting pressure on the stock, it should not be part on one’s portfolio.  Well it is already part of mine.

Disney was my first stock purchase.  EVER.  I had just started dating my boyfriend at the time and he was exotic.  He talked about things like buying stocks and investment property.  I had never heard these things before.  In other words, he spoke the language of wealth creation.

He encouraged me to think about stock ownership and he introduced my to his broker and I was encouraged to buy.  So I did buy. One stock.  That’s right, my first stock purchase was one share of Disney.  One paper share of Disney.

Today, somewhere in my house is a pretty Disnified certificate indicating my ownership of one share of the happiest Corporation on earth.  I should find it to show Mirror Image. Paper shares don’t even exist anymore do they?  Plus, it is worth about a hundred bucks.  That is an expensive piece of paper.

Since I bought that first share in 1993, the stock has split one final time in July 1998 (3-1) and reached an all-time high of about 116. It is now sitting at about 98 as of this writing.  The stock is being treated as an evil step-sister right now (see what I did there?) but, I suspect a motivational song about being down but not out will be along soon to show us the way to the happy ending.

I bought the Disney stock that first time for reasons of sentimentality.  I knew Disney.  It was my first vacation as a child that I remember.  I lived down the street from the  Park when I moved to Orlando for work years later. It was the first place I took Mirror Image for her first vacation (with a Town Car ride from our hotel right up tot he front gate thank you very much.  It was her 5th birthday and I was too excited).  I have almost every Disney animated feature in my collection and I know where I was when I watched the premiere of the original High School Musical television movie.  I know I am not not a hard core fan when compared to others but, I have fondness for Disney that is similar to maintaining a childhood friendship into adulthood.

By the way, when I purchased my first few shares, they cost about $10 a piece.  I have since accumulated 100 shares and get a dividend disbursement most quarters.  Disney stock alone will not make me rich but it is still very much my happy place.

This is a tale timing the market with the bad news.  I am not great at timing the market (is anybody, really?) so since I have bought the stock, I will continue to hold.

Thrifty Image